Low Northeast Asian spot prices have sparked traders' interest in storage plays designed to take advantage of the expected seasonal winter price rally, which are looking attractive thanks to a combination of ample spot supply and lower shipping rates. Asian end-users say they started receiving offers in early August for floating Atlantic Basin cargoes deferred for sale into the Pacific between December and February. Since then, more firm and tentative offers have been made for Atlantic as well as Pacific cargoes. They say one of the first was a Spanish reload aboard E.On's Kita LNG, although the cargo is now understood to be aimed at South American buyers (p7). The vessel loaded at Cartagena in early August, when WGI assessed prices in Southwest Europe at around $10 per million Btu, slightly up on the record low of $9.70/MMBtu hit in late July.
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